Wix is a website building platform, which allows users to create HTML5 websites and mobile sites through the use of online drag and drop tools. Wix reported first-quarter earnings, of which the result is very interesting.
The growth rate is huge
The numbers show that people registering more domains and creating more websites due to Covid-19 pandemic. Here are some results of April 2020.
- April 2020 demonstrated significant momentum across the platform as the need for a dynamic online presence accelerates
- Added 3.2 million new registered users, an increase of 63% y/y and an all-time monthly high
- Collections of the April 2020 user cohort were 76% higher than from users acquired in April a year ago
- Net premium subscription additions in the month of April were up 207% y/y
- Accelerating new subscriptions generated from existing cohorts
- Increasing marketing investment in user cohort acquisition due to thriving demand and to generate further growth
- Initiating Q2 outlook of accelerating growth for revenue and collections, underscoring strong performance quarter to date – expecting collections growth of 28-30% y/y in Q2
- Solid Q1 2020 results: total revenue of $216 million and total collections of $249 million, both up 24% y/y
Because of Covid-19, many companies are having different results than normal situations. Earlier this year, Wix said that it was too early to determine the impact of Covid-19 on its business. The company now says Covid-19 changed consumer behaviors. They are at home so more domains and websites are coming.